Brokers can support any sort of personal situation. Whether you are just starting on your property journey, or you are looking to refinance. Find out why you should use a mortgage broker!
So you are looking at buying a house. You have been online researching and talked to a few friends about their experiences. Someone suggested their mortgage broker but you have seen some good options. You are wondering whether to contact the bank or just apply for that loan with the online form directly? Why would you bother involving an expert in your home loan journey?
Well, there are lots of really valid reasons. Each of these reasons adds up to a better chance that you can get the best deal you could get at the time. Why would you not want that?
What does a mortgage broker do?
A mortgage broker acts as a point of contact between you (the borrower) and those lenders who offer loans. A mortgage broker’s primary goal is to help you find a lender with the best terms and rates to meet your financial needs and goals. We maintain their contact and awareness of lender’s products and policies, they check your credit, collect necessary paperwork from you for the lender and work as a loan officer to help you and the lender complete the home loan purchase.
Mortgage brokers do not offer the loan. We help the borrower find the right loan and help with the application process.
Why does this help you?
There is power in having someone as a go-between yourself as a borrower and a lender. ASA Mortgage Brokers‘ objective is to thoroughly comprehend the client’s financial circumstances, identify their needs and goals, and ultimately present the optimal product that is best suited to the client’s needs and goals from the panel of lenders in the market.
If you are not a seasoned borrower or a first-home buyer, the process can be stressful. Perhaps you may find yourself feeling isolated or like you do not understand what you need to find a best-suited loan.
ASA Mortgage Brokers have a streamlined process, saving customers valuable time that would otherwise be spent reviewing countless products, deciphering lender policies, and completing extensive paperwork.
You may have found the right broker when you realise that you are more than a transaction with us. We work with customers from the point of application through to settlement and beyond. This means that we will support you on your loan journey over the years to make sure you get the most out of your loan.
When should I use a mortgage broker?
There is no set rule for when you should use a mortgage broker, but there are certain situations where our services can prove to be invaluable. For instance, if you have a complex financial situation or have been rejected by traditional lenders in the past, ASA Mortgage Brokers can help you find alternative options that may better suit your needs.
We can support any sort of personal situation: whether you are just starting on your property journey, or you have had a loan for a few years and you went directly to a bank the first time, through wanting to build an investment property portfolio.
There is great diversity in individual circumstances, and understanding those circumstances is crucial as there is no one-size-fits-all solution when considering mortgages.
Whether you are a self-employed individual with varied income sources, have an average credit history, hold a temporary visa, or simply seek to refinance for the lowest rate possible, our commitment is to find tailored solutions that address your specific needs.
What should you look for in a mortgage broker?
When choosing a mortgage broker, it is imperative to do your research and find a broker who is experienced, knowledgeable and trustworthy. Look for someone who has a good track record of helping clients secure loans and has positive reviews or testimonials from past customers. It is also vital to ensure that the mortgage broker is licensed and accredited by relevant industry bodies.
You should not be afraid to ask questions about their experience, how they are paid (by commission or fee) or if they have any partnerships with specific lenders. A good mortgage broker will always be transparent and put your best interests first. Also, mortgage brokers are legally bound to look after the customer’s best interests as a duty under the NCCP.
Advantages that come with using a mortgage broker
1. Independent experts in their field
Mortgage brokers provide expert advice throughout the home loan process due to our extensive knowledge of lenders and lender products and loan application requirements and processes. We are skilled at evaluating your financial information and needs and want to connect you with the right lender.
Mortgage brokers do not usually charge a fee for home and investment loans as they receive a commission when a loan is settled. In the odd situation where the best loan option is from a lender who does not pay commission, they will discuss a fee with you for the service provided. In this case, the client will receive a Credit Quote.
2. Know the lenders, their policies and loan options
ASA Mortgage Brokers has access to more lenders than you have, with a panel of up to 40 lenders. We have over 35+ lenders available to us, which means we can trawl through a wide range of products to find the features you are looking for.
We know the quality of lenders that you might not have come across or have access to lenders that work exclusively with mortgage brokers. This can work in your favour as the broker should be able to identify more suitable loan options and possibly better rates than you might be able to source on your own. Navigating through a vast pool of lenders on your own is no easy task.
We invest time in understanding the unique strengths of each lender, customising solutions to suit a broad spectrum of customer needs. With the intricacies of lenders’ products and policies, it can make all the difference having a mortgage broker as your primary contact, in ensuring the correct product is selected and that your application is successful. In addition, we do not apply with a lender if the success rate is not positive before applying for the loan.
3. Know you and your financial goals and needs = a better product match
ASA Mortgage Brokers works with you to understand your needs and goals, and your loan capacity (what you can afford to borrow).
Not only will we find options to suit your situation, but we will also be the support you need to navigate the process. Any question you may have, we will have the answer, whether it is how each loan works or what the loan costs.
4. Putting your best interests first
Some rules and regulations ensure that a mortgage broker acts in your best interests throughout your home loan journey – rules and regulations that do not apply to lenders and banks.
How often do you go to someone for help and get transparent information? A good mortgage broker is required to be on your side. That is where ASA Mortgage Brokers come in.
5. Save you time, effort and money
It is always nice to have someone else do the legwork. Mortgage brokers maintain contact with a range of lenders and their products, including some of the lesser-known but equally great options out there. So you will have more options at your fingertips. We are good at noticing difficult payment terms or other features of a loan you might not see that would cost you more upfront or over the life of the loan. All this can add up to many thousands of dollars in savings and shorten the time it takes for you to find and get that perfect home loan.
It is a convenient way to access many products from one touch point. These days there are excellent online and face-to-face options so we can be flexible and continue to work while you get on with life.
It also is not going to impact your credit score. Each time you apply for a loan directly through a lender they run a credit check. Each of these is recorded and over time can negatively impact your credit score. So it is a safe way to check out more options without impacting future applications and your credit score.
Dealing with a broker
You should not be afraid to ask questions – ask them for details about how they will assist you, their fees, the lenders they work with and their experience in the business. Our Home Page illustrates the journey with us in a nutshell. A mortgage broker must provide you with a Credit Guide, Credit Quote (if applicable when charging a fee to the client), The Statement of Credit Assistance (SOCA) before applying for a loan with a lender. What type of loans do they specialise in or work with the most? If a broker does not seem right for you, try another one. There will be a best fit for you out there. Remember, you are not obliged to take their recommendations so it is a no harm no foul option to make sure you have scoped out the best possible home loan deal for you.
For more information on how to work with us click here to get in touch.
The information is a compilation from various sources for your benefit and should not be relied upon instead of appropriate professional advice. This article is prepared based on general information. It does not consider individual financial objectives or needs and is not financial product advice. The original content was first published on the Yellow Brick Road (YBR) blog website.